Gold prices moved up in Asian trading on Monday, trimming part of last week’s steep losses as investors responded to a more conciliatory tone from U.S. officials on trade relations with China. The precious metal also remained close to recent record levels.
Spot gold rose 0.4% to $4,267.70 an ounce, while December gold futures climbed 1.6% to $4,280.65 per ounce as of 00:49 ET (05:49 GMT). Spot prices had touched a record $4,379.44 last week before retreating.
Gold slips from record highs after U.S.-China tensions ease
The metal saw heavy selling last week after U.S. President Donald Trump downplayed the likelihood of a prolonged trade conflict with China and confirmed that negotiations were still moving forward. Trump said he viewed high tariffs on China as “not sustainable” and announced plans to meet Chinese President Xi Jinping in South Korea in two weeks.
Additionally, U.S. Treasury Secretary Scott Bessent confirmed that further discussions with Chinese officials were scheduled for this week. These comments boosted sentiment across financial markets, prompting investors to rotate out of safe-haven assets such as gold and into risk-sensitive instruments.
The retreat in gold was also amplified by profit-taking following a powerful two-month rally. The metal had been supported by mounting concerns over the U.S. economy amid a government shutdown and growing expectations of additional interest rate cuts by Federal Reserve System.
Safe-haven demand continues amid geopolitical risks
Gold’s gains on Monday were further underpinned by heightened geopolitical uncertainty. Tensions flared in the Israel-Hamas ceasefire over the weekend, though Israel signaled the truce remained intact and humanitarian aid to Gaza would resume.
Meanwhile, global attention turned to U.S. efforts to broker a ceasefire in the Russia-Ukraine conflict. Trump reportedly met with Ukrainian President Volodymyr Zelensky and urged Kyiv to cede territory to Moscow, while also declining additional military support.
These developments, coupled with economic worries in the U.S., helped sustain demand for safe-haven assets, including gold and other precious metals.
Spot silver gained 0.6% to $52.2520 an ounce, hovering near its own all-time high, while spot platinum fell 1% to $1,597.02.
In the industrial metals segment, copper prices advanced after positive economic data from China, the world’s largest importer. The country’s GDP grew slightly faster than expected in the third quarter, though it was still the slowest expansion in a year.
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